Money Market Report for the week ending 28 September
ECB Monetary Operations
On 24 September, the European Central Bank announced its weekly main refinancing operation. The operation was conducted on 25 September and attracted bids from euro area eligible counterparties of €6.43bn, €1.47bn higher than the bid amount of the previous week. The amount was allotted in full at a fixed rate equivalent to the prevail- ing MRO rate of 0.00%, in accordance with current ECB policy.
On 26 September, the ECB conducted a three-month, longerterm refinancing operation to be settled as a fixed rate tender procedure with full allotment, with the rate fixed at the average rate of the MROs over the life of the operation. The operation attracted bids of €1.26bn from euro area eligible counterparties. The amount was allotted in full in accordance with current ECB policy.
Also on 26 September, the ECB conducted a seven-day US dollar funding operation through collateralised lending in conjunction with the US Federal Reserve. This operation attracted bids of $0.07bn, which was allotted in full at a fixed rate of 2.67%.
Domestic Treasury Bill Market
In the domestic primary market for Treasury bills, the Treasury invited tenders for 92-day bills for settlement value 27 September, maturing on 28 December. Bids of €55m were submitted, with the Treasury accepting €18m. Since €23m worth of bills matured during the week, the outstanding balance of Treasury bills decreased by €5m, to stand at €325.5m.
The yield from the 92-day bill auction was -0.354%, unchanged from bids with a similar tenor issued on 20 September, representing a bid price of €100.0905 per €100 nominal.
During the week under review, there was no trading on the Malta Stock Exchange.
This week the Treasury will invite tenders for 28- and 182-day bills maturing on 1 November and 4 April 2019, respectively.